Rent-to-own firm PerfectHome collapses with thousands of customers affected
RENT-to-own firm PerfectHome has collapsed into administration, affecting thousands of customers.
The firm lends money to hard-up families cash to buy household goods which they then pay back with interest added on top.
But the financial watchdog Financial Conduct Authority confirmed that Temple Finance - which traded as PerfectHome - went into administration on March 25.
It confirmed any loan agreements will not be affected by the administration.
That means you can continue to keep hold of your goods, even though the company has gone under.
There will also be no changes to how you make your monthly repayments.
That means you still need to make them.
Any product insurance cover taken out will remain in place.
If you have lodged a complaint or have any outstanding compensation claims with the firm, the administrators - Teneo Financial Advisory - will update customers with more details about how complaints will be handled.
It will also update customers with any next steps they need to take "as soon as possible", the FCA said.
In a statement published on its website, PerfectHouse said: "We would like to thank our employees and suppliers for their continued support."
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When a company goes into administration, the firm appointed as the administrator will then look for a buyer to take the company on.
PerfectHome and Teneo were contacted for comment.
PerfectHome has previously reported poor turnovers, and in 2018, closed all but one of its 18 stores in the UK - it then went fully online soon after.
It had 30,000 customers in 2020, and was one of the go-to hire purchase companies used by cash-strapped households following the collapse of Brighthouse.
In 2018, it was ordered to pay back £2.1million to customers following an investigation by the FCA.
It found that the firm did not carry out sufficient enough affordability checks which led to customers taking out loans they couldn't afford to pay back.
Some customers had their loans written off, while others were handed back cash.
It wasn't the only rent-to-own firm forced to cough up compensation to customers.
BrightHouse was also told to repay 249,000 customers £14.8million for irresponsibly lending too.
It marked a victory for The Sun's Stop The Credit Rip Off campaign to expose the cost of borrowing from firms like PerfectHome.
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We called for more stricter affordability checks on rent-to-own firms to stop families facing paying more than double the amount they borrowed.
It was successful in leading the Financial Conduct Authority (FCA), to introduce tougher rules on issuing doorstep loans four years ago.
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